In a large bowl, thoroughly mix margarine and sugar. Add vanilla and coconut
flavoring. Add egg yolks one at a time, beating well after each addition. Sift
flour, baking soda and salt together. Add sifted dry ingredients alternately
with milk. Blend in coconut, then fold in egg whites. Pour into prepared layer
pans. Bake in preheated oven 20 to 25 minutes. Turn layers out onto wire racks
to cool.

Icing:
With an electric mixer on medium speed, mix margarine, cream cheese, vanilla and
coconut flavoring. Gradually add confectioners' sugar, beating until smooth.
Spread icing between cooled cake layers and on top of cake. DO NOT ice the
sides. Sprinkle the coconut over the top.